Are you sure?

Nearly 100,000 Hungarians keep private pension accounts

Nearly a hundred thousand Hungarians have retained their private pension accounts, which hold assets of HUF 234 billion, Hungarian pension fund association Stabilitás said based on preliminary figures on Thursday.

Hungarian private pension fund members had until end of January to go back to the state scheme along with their pension savings or face losing their state pension. About 97% of private pension fund members opted to do so. 

The private pension funds transferred HUF 2,827.5 billion in assets of those returning to the state pension system to the state Pension Reform and State Debt Reduction Fund.

Stabilitás estimates that members reentering the social security pension system will receive an average HUF 80,000 in real yield on their former private pension fund assets.

Figures show that 11 funds have reached membership of over the 2,000 required for operating, while five funds ─ ING, OTP, Aegon, AXA, Allianz ─ have more than 10,000 members, Stabilitás Vice President Gábor Borza said. Major funds manage 80% of all assets in pension funds.

All private pension funds submitted their application for the funds due back as real yields or earlier extra membership contributions due to their former members by the July 20 deadline, and funds started payments to former members on Wednesday, Borza said.

The Pension Reform and State Debt Reduction Fund has to transfer the funds required to the private funds within two days of their application. The private pension funds then have until August 31 to pay out the real yields and contributions to former members.